by: Brandy Bissett
When you think of predicting the future, you may envision some dimly lit, incense-infused tent at a local carnival, a magic 8-ball, or Ouija board. Predicting the future may seem like a fairytale or the work of science fiction, but it’s a very real occurrence in the world of artificial intelligence or AI.
defi SOLUTIONS leverages artificial intelligence in its technology to provide you with valuable insights into your collection efforts. Insights can include accounts likely to default that haven’t yet, potential defaults by region, or even potential defaults by generation. This AI-fueled predictive modeling is changing collections and recovery processes to mitigate default losses.
So how does artificial intelligence and predictive modeling work to find accounts that will default in the future and initiate intervention procedures to protect you against potential loss?
If an account is in a downward trend regarding motivation or ability to pay, it should be treated as a probable risk before it actually becomes one.
Predictive models can alert to payment patterns that indicate a borrower is struggling to pay their balance. For example, an account could be just a few days late or the borrower could pay two installments at once. Any variation from the norm is flagged.
A programmed behavior could be put in place which triggers when an unwanted pattern emerges. The system could alert staff to reach out to the borrower to inquire if they need help and to offer up solutions before debt starts to pile up.
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Enhancing Your Relationship with Borrowers
Not only can predictive models indicate which accounts are likely to default, the models can reveal the best time to get in touch with borrowers for optimal results. For example, if the borrower earns a living through shift work, it’s best to call them when they’re not working or resting.
By demonstrating to your borrowers that you care about their lifestyle and habits, your relationship with them improves, which helps your collections rates. Predictive models make the most of borrower data, streamlining the process from start to finish.
Interested in AI and predictive modeling for your collections operations? White-labeled Collections Management from defi SOLUTIONS leverages industry-leading technology for maximum collections efficiency and effectiveness.
defi SOLUTIONS offers lenders an end-to-end, total solution for the loan or lease lifecycle. Partnering with captives, banks, credit unions, and finance companies, defi’s market-leading solution helps lenders exceed borrower expectations. From digital engagement through the complete lending process, defi sets new standards for flexibility, configurability, and scalability in originations and servicing (by your experts or ours). If you’re curious about the possibilities of a complete end-to-end solution for your unique lending lifecycle, take the first step. Contact our team today or register for a demo.